mm2 Asia to sell 390m new shares at S$0.05 apiece to 2 investors

ENTERTAINMENT company mm2 Asia on Wednesday (Feb 23) announced that it plans to place out S$19.5 million in new shares to 2 investors.

A total of 390 million new shares will be sold at S$0.05 apiece to Goi Seng Hui and Oei Hong Leong.

The placement shares represent 14.4 per cent of the enlarged share capital of the company.

Goi is the executive chairman of global food and beverage manufacturer Tee Yih Jia Group and GSH Corporation. Oei is the chairman of Chip Lian Investments, the Oei Hong Leong Foundation and the Nei Xue Tang museum.

The placement will raise for the company net cash proceeds of around S$19.3 million after deducting estimated expenses of around S$200,000. Of this, 38.9 per cent will be used to reduce bank borrowings for the next 12 months; the remaining 61.1 per cent will go into general working capital.

The placement price represents a 9.58 per cent discount to the volume weighted average price of S$0.0553 per share, based on the trades done on Feb 23.

Shares of mm2 Asia ended Wednesday at S$0.055, down S$0.002 or 3.5 per cent.